Definition
Replacement value (axia antikatastasis)
Replacement value (new-for-old) is the cost to replace a damaged or lost item with a new equivalent, without deducting for age or wear. It differs from «current value», which subtracts depreciation and pays less. Which basis your policy uses decides how much you receive.
Also known as: New-for-old value
Two policies that both 'cover' the same appliance can pay very differently: one at new-for-old (you buy new), the other at current value (you get the old, reduced price). In home and contents insurance this difference is one of the most important, and it often goes unnoticed until a loss.
In your own home policy, look for whether settlement is «on a replacement / new-for-old basis» or «on a current / actual value basis», per cover. Check too for any age limit on items. PolicyWallet surfaces the valuation basis in your document.
Upload your policy — free analysisFrequently asked questions
What is the difference between replacement value and current value?
Replacement value pays for the new equivalent; current value deducts for age and pays less. The former usually costs a higher premium.
Is new-for-old always covered?
No — it depends on the policy and often on the item's age. Some covers switch to current value after a number of years. Check the terms.
Related
Educational content, not insurance advice. PolicyWallet explains what the term means and helps you find it in your own document — it does not assert what your policy covers.